Are we being duped by word of mouth marketing? The government thinks so. So why regulate marketers’ efforts?

The Federal Trade Commission (FTC) has turned an eye to online word of mouth marketing, and has proposed revisions to the Guide Concerning the Use of Endorsement and Testimonials in Advertising report. Because the Web has become the go-to for advice on products and vendors, the FTC contends that these advisors need to be held to the same standards as traditional marketers: sponsored posts need to be positioned as such, etc.

This report hasn’t been updated since 1980, but the revised version should be available this summer. With that, the FTC will begin to monitor blogs. This is a good thing, although it seems like it’s a little late in the game.

Yes, there are countless spam-blogs that aggregate content in hopes of making some pay-per-click dollars. There are sham blogs posted by organizations to either promote the organization’s offerings or to shoot down its competitors. These are the blogs that will be easy pickings for the FTC. But the vast majority of blogs to which consumers turn for advice do practice transparency, because they don’t want to risk alienating customers or readers, or damage to the brand reputation. And it’s just the ethical thing to do.

Early in the game, the Word of Mouth Marketing Association (WOMMA) developed a code of ethics to define best practices, unacceptable practices and baseline rules for word of mouth marketing. While WOW is not a member of WOMMA, we do practice the principles outlined in the code and ensure that our clients do, as well. There are six main principles of this Code.

1. Consumer protection and respect are paramount
2. Honesty of ROI: Honesty of Relationship, Opinion, and Identity
3. Respect the rules of the venue
4. Manage relationships with minors responsibly
5. Promote honest downstream communications
6. Protect privacy and permission

These principles certainly seem like common sense to me.